ISign Media Solutions has agreed to purchase Pinpoint Media Group, which operates digital signs in Alimentation Couche-Tard convenience stores.
The Toronto-based company plans to use its software to enhance the chain’s 5,900 television monitors and allow consumers to receive offers for coupons on their cellphones.
ISign will pay for the acquisition by issuing 7.5 million of its shares worth about $2.2 million based on the company’s share price Wednesday afternoon.
The deal revising Couche-Tard’s agreement with Pinpoint is expected to be completed within 45 days. The new five-year deal with an option for five more years sets out royalty payments to Canada’s largest convenience store chain.
It would also issue warrants to Couche-Tard for three million iSign shares.
The Pinpoint acquisition is expected to more than double iSign’s advertising sales and generate more software licensing revenue, iSign said in a news release.
Chief executive Alex Romanov said its convenience store network is the fastest growing and more profitable segment, with an ability to “influence purchases and collect anonymous shopper data.”
Once its software is installed in the coming months, iSign said its digital signage network will reach an average 1.5 million convenience store shoppers a day.
